Latin America: the tomato products market

20/06/2024

François-Xavier Branthôme

Chile,

South America

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With a value of EUR 8 to 9 billion and a total of close to 2.5 million tonnes in 2022, the Latin American market should enjoy average annual growth of 3.8% from 2023 to 2027.

The Latin American market for product groups that may include tomato-based ingredients absorbed 2.475 million tonnes of finished products in 2022. This market is dominated by three product categories, which together account for almost three-quarters of the quantities marketed in the region: with nearly 785,000 t of products sold, and almost a third of total sales by volume in 2022, pasta sauces are the leading sales category, followed by tomato pastes (659,000 t and 27% of total quantities) and ketchup (400,000 t and 16% of the total).
Prepared dishes accounted for around 10% of sales volumes in 2022, while pizzas, soups, canned tomatoes and sauces (other than pasta sauces) each accounted for between 3% and 4.5% of the total by volume.

According to figures provided by Euromonitor, the value of the Latin American retail market for products that may include tomato-based ingredients amounted to EUR 7.62 billion in 2022. Given the breakdown of sales volumes between the retail and foodservice sectors, the total value of the market could be estimated at around EUR 8.6 billion in 2022. The market shares of the various categories are less contrasted in value than in tonnage. Only two product families (pasta sauces and ready-made meals) reached a share of around 22% of total retail sales in 2022. Pastes accounted for around 15% of the total value of retail sales, followed by three product families (ketchup, pizzas and soups) which accounted for between 11% and 12% of the total (see additional information at the end of the article).

As we have already commented for other regions (see related articles below), the bulk of sales takes place in retail outlets: over the 2017-2022 period, more than 90% of ready meals, pizzas and pasta sauces were sold through retail channels. As for soups, sauces (liquid or dehydrated) and pastes, the proportion was between 80% and 88%. The two sectors best represented in foodservice channels (ketchup and canned tomatoes) respectively achieved only 28% and 44% of their sales in those outlets.

According to Euromonitor's projections, none of the product families studied is likely to experience a decline in volumes over the 2023-2027 period. The lowest average annual growth rates (CAGR) are expected in the categories of soups (1%), dehydrated sauces (2%), liquid sauces, pizzas, canned tomatoes and prepared dishes (3%). On the other hand, the strongest growth prospects for the period under review concern the sectors that are already the largest in terms of volumes (tomato pastes (+3%), ketchup (+4%) and pasta sauces (+5%)), which should contribute to overall Latin American market growth of +3.8% by 2027. This increase should translate into a total sales volume of around 2.98 million t in 2027, with no significant change in the relative importance of the different product categories.

All the results for the seven regions and nine product categories studied by Euromonitor over the period 2017-2027 are summarized in the Yearbook 2024, which was distributed free of charge to participants at the 15th World Congress on Processing Tomatoes, to be held in Hungary from June 10th to 12th.

Some complementary data
Distribution of the retail market value of product families that may include tomato-based ingredients in 2022.

Trends observed from 2017 to 2022 and expected from 2023 to 2027 for each of the product families studied by Euromonitor on the Latin American market.